BTEC – Level 7

Advanced Professional Diploma in Management Studies

Assignment Brief
Unit Tile: Leadership for your organization
Assignment reference: UNIT 8

Prepared By:
ASIF MANSURI
Student ID No: 0509BHC002

Submitted To:
Lecturer: Dr. Hein Matthee
Date of issue: 22nd July 2010
Submission date: 17th September 2010

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 Assessment sheet
(Individual Student)
Activity
title:

(For official use only)

PGD- (B-Tech-Level-7)

BTEC Advanced Professional Diploma in Management

Name: _____ASIF MANSURI

Student number: ____O509BHC002

Lecturer: Dr. Hein Matthe

Leadership of Your Organisation – unit 8 Assignment reference: LYO 1

Date issued: 22 July 2010 Date due: 3pm, 15 September 2010

Date submitted: 17th September, 2010

Assessor(s): _____________________________________________

Outcome Evidence for the Feedback Assessor’s Internal

criteria decision Verifica
tion

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 Examine a Section in the a
range of report
current evaluating a
theories and range of
models of leadership
leadership and theories and
their models that
applicability to reflect current
different sub- thinking
divisions,
organisations, Section in the b
industries and report
sectors explaining the
(8.1) expected impact
of a range of
leadership
styles on
specific sub-
divisions,
organisations,
industries,
sectors or
industries

Investigate the Section in the a

current and report assessing
future current
requirements requirements
of leadership
within a
subdivision,
organisation,
industry or Section in the b
sector report
developing an
(8.2) internally
consistent and
plausible
scenario of
likely future
requirements of
leadership for
an organisation,
industry or
sector

Make proposals Section in the a

for the report making
development proposals that are
of leadership designed to meet
competences the specific
to meet requirements of
current and an organisation,
predicted industry or sector

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future Section in the b
requirements report critically
within a evaluating the use
subdivision, of a full range of
organisation, methods of
industry or leadership
sector development
within the
(8.3)
specified context

Section in the c
report selecting
and justifying
choices made

Lecturer’s additional feedback and comments

DECLARATION

I confirm that this is my own work and I have not plagiarized any part of it. I have
also noted the assessment criteria and pass mark. I declare that the work I am
submitting for assessment contains no sections copied in whole or part from any
other sources, unless it is explicitly identified by means of quotation marks or in the
case of very long quotations, by means of wholly indented paragraphs. I declare that
I have also acknowledged such quotations by providing detailed references in an
approved format. I understand that unidentified and un-referenced copying both
constitutes plagiarism, which is a very serious offence.

Learner’s signature: _________________________

Date: _____________________________________

Internal verification of assignment brief (final agreed version)

IV name Date
(print)

I confirm that this is all my own Learner signature

work

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 ACKNOWLEDGEMENTS

The writing of this report has been one of the most significant academic
challenges I have ever had to face. Without the support, patience and
guidance of my lecturer Dr. Hein Matthee this study would not have been
completed. So, I would like to give my sincere thanks to Mr. Sumesh S.
Dadwal who inspired and motivate me to complete this report. So, i
want to give my sincere thanks to Dr. Hein Matthee and Mr. Sumesh S.
Dadwal for their important support.

…………………

Asif Mansuri

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 TABLE OF CONTENTS

Declaration……..………………………………………………………………….. i
Acknowledgement ………………………………………………………………… ii
Contents: Page No.
Introduction ……………………………………………………………………. 7
TASK 1

(a) Range of Leadership theories and Models of McDonald’s............... 7

(b) Impact of a range of Leadership Styles ........................................................ 9

TASK 2

(a) Current leadership requirements of McDonald’s................................ 10

(b) Future scenario........................................................................................ 11

TASK 3

(a) Proposal for leadership development................................................. 14

(b) Proposal for leadership development................................................. 15

(c) Developing Management Competencies..........................................................16

Conclusion…………………………………………………………………………… 17

References…………………………………………………………………………… 17

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Introduction:
This report is the study of McDonald’s leadership style and models that the organization
uses. It does the study of different possible useful models for the organization. Furthermore,
it does the study of impact of leadership to the McDonalds and the different mindset which
are used for running organization. Finally, it proposes the suitable model of leadership to the
McDonald which might be applicable for the organization.

TASK 1
(A) Leadership theories and models that reflect current thinking identifying how
they might be of value to McDonalds

Leadership plays an important role on the achievement of company goal. It also evolves on
what kind of leadership is implementing and how it can be useful on their success. Different
kind of leadership identified as the time goes depending on what particular time it is
appropriate. There are many leadership style and theories that suits the different situation of
McDonalds. Some of them are as follows.

A) Transactional leadership
This kind of leadership is reward and punishment. McDonalds gives rewards to
employees who deserve but gives disciplinary actions or punishment to those who
did not follow. There were certain guidelines and policies McDonald Company should
follow in order to measure as to whether give reward or punishment. The leader
should impose his/her subordinate to follow implementing policies and must see to it
that he himself is following also. It is the duties and responsibilities of the
subordinates to follow the leader based on McDonald’s policies in order to avoid
punishment so the company would be successful.

B) Transformational leadership
One way of making the employees feel important is through this leadership. They
know their objectives and it is clear to them the purpose of their short and long term
objectives. In that way, as a leading food company, one of its objectives is to create a
harmonious relationship of employees. They should support each other, they should
motivate each especially during stressful times or give strength whenever they feel
that one them needs. McDonald uses this style to help employees feel and realize
that they are part of the organization, to help them build performance by valuing
them; hence it is easy for them to meet their target objective. It is transformational not
only to the company but also to valued employees.

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 C) Laissez-Faire Leadership
This leadership style is applicable to top employees but not to rank and file in the
case of McDonald. The company has policy to be followed because they are into
food industry so quality control and discipline is very necessary. This kind of
leadership is more on participative form of leadership. This kind of leadership is
attractive to employees because it appears that they participate and be involved in
decision making process. But McDonald has policy that governs the day to day store
operations and has company standards to follow.
http://changingminds.org/disciplines/leadership/styles/leadership_styles.htm

D) Charismatic Leadership
This leadership is more on employee’s attention. This would be apply in McDonald to
help motivate and enhance their willingness and loyalty to the company and in
achieving their common goal. The leaders must live by example in order so that the
subordinate must follow the way they behave. The problem with these in applying to
McDonald is that when the staffs does not support the values of the leaders

E) Situational Leadership
This kind of leadership is not applicable to McDonald. This international food chain
company has a global standard of management. Situational leadership maybe
applicable in some remote situation that the company may encounter with different
situations. It will help to respond in emergency situation pertaining to staff and crew.
This leadership style simply said that a leader should act accordingly depending on
the present situation. The leader should be flexible in handling different situation
especially pertaining to staff and crew. McDonald Company needs a leader that is
flexible good in multiple tasking and delegating in order to have a productive and
world class employee. Situational leadership is applicable in McDonald to have make
the employee feel that they can respond to their needs as fast as they could on the
best of the company’s capability in attaining both the employee and company’s goal.

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TASK 1
(B) EXPECTED IMPACT OF A RANGE OF MANAGEMENT STYLE

In every department of an organization, different style of leadership is applicable. Each

division has its own function that’s needs different approach in dealing their operations to
achieve their objectives. Here are some company departments with applicable leadership
style in McDonald.

 WAREHOUSE
Food Chain Company has many frozen products needed on their store. Warehouse
for McDonald is very important for the storage of said supply and other supplies
needed for their store operations. It is usually short term basis because these items
stored, has short life span and needs to dispose as part of McDonald’s quality
control system.

 BACK OFFICE
The department under these needs a total commitment in achieving the goals of
McDonald. The leader should engage with the staff for them to merge their motives
and objectives. The employees under this department play a great part behind the
scene, wherein most of the documents and assets of McDonalds are being
accounted kept and monitored.

 SENIOR MANAGEMENT AND POLICY

Top management should have the will to make suggestions to their leaders for the
betterment of McDonalds. They can make consensus or get valuable inputs from
employees in setting objectives. Everyone’s commitment through participation is
important.

 SALES
The reward system is eye catching in this department. Most of McDonald’s store
has a sales quota in order to get a reward. Punishment is given to employees
whenever they break the rules set by McDonald. Employees are motivated to do
their best to reach their target sales to claim their reward.

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  MARKETING
McDonald is a goal setter. They usually put target on their monthly objectives. In
achieving those objectives the leader should motivate the employees to have
commitment in the company.

 PRODUCT SELECTION FUNCTION

In this department deciding what property a company should acquire is very hard. It
needs a thorough inspection to meet the set standard of McDonald. A leader should
make sure that he/she should present emphasis on the objectives. McDonalds
maintains high standard and quality food and service so product selection functions
play a great role in the achieving their objectives
http://en.wikipedia.org/wiki/Leadership

TASK 2
(A) Current leadership requirement

Success of the business is based on the good leadership and committed employee.
Multinational company like McDonald had established a strong form leadership. This leader
was trained according to their job specifications. In order to maintain its marketing standing
the leadership style should be properly used. Proper delegation is necessary in order to
monitor the business. Through delegation top management will know what really is
happening in frontline, whether objective are met, whether policies are being followed.

The types of leadership that is best applied to McDonald Company will depend on the
country. Since McDonald is an international food chain different kinds of leaders were
trained. This leaders who interface and with the people who actually do the work. This
managers assigned in store must interpret and transmit management policies and objective
to staff and crew. These policies should take into consideration the workers values, needs,
and perception. Being leader in food chain quality control on food serve is very important.
McDonald always promotes world class quality service to maintain the position they have
right now in the industry. Promotion is necessary to promote new products introduced in the
market. It played a great role in making the people aware that McDonald does not stop in
making them satisfied, there is always new offer. Competition is so stiff, in order to compete
and remain on top, McDonald does not stop introducing new ideas and products. Employees
were also given large consideration to maintain the commitment and loyalty they have for
company. McDonald’s passion to serve quality food and service, and having the best

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committed to employees is one the asset in maintaining and attracting customers, which
make them remain on the market.

In business world or in any organization competition is a word that they always need to
make them creative and innovative. As the world is changing so fast, so is the trend in fast
food chain. With this McDonald always make sure they can cope up the global competition
and remain the leading company amongst food chain. The elasticity of McDonalds leader is
very necessary because the demand for competition is so high and leaders should react
quickly and effectively on the different factors that can affect the global standard of the
company. Leader’s capacity to understand the behaviour of his staff is important or is just
important like other things. Technology oftentimes fails due to human problem. It is
necessary the each employee assigned in each department must be strict to follow the
standard policies set by McDonalds to avoid unnecessary problems. New technology plays a
great role in communication and report. Through this McDonald top leaders can monitor
everyday operations. The importance of this, is the capacity to make necessary actions if
there is unsatisfactory conditions arise.

Many factors affect the operation of McDonald. There’s always a challenge on how to fit in
because in every country there is different culture, different behaviour of leaders. But in
order to be successful McDonald motivate leader and trained them to be more effective and
reliable, always for change or innovation for the development of the company. Since
McDonald is a well establish successful company their main target is to remain on top.
Policy implementation among their employees and quality control is strictly imposed to
maintain if not surpassed the global performance of the McDonald Company which bring
them to no.1 in food chain industry.

TASK 2

(B) Future leadership requirements:

Success of the business does not only rely on the capability of a leader. There were factors
that help contributes in and failure of the company. External variables play a great role in the
business. These are the natural forces that need good planning and alternatives if this
scenario will affect the company in a negative way. Precautionary measures and alternatives
are necessary to prevent from great loss. Here are some factors that affect the business.

SOCIAL

This institution affects the basic values, perceptions, preferences and behaviours of the
business. This is the main factor where McDonald makes their plan. It is the so called target

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market that is necessary for the success of the company. As international company factors
that affect the stabilization would differ on the economic status of the society/country.

Most likely: High purchasing power of the customers. As an international food company
develop a strong ad that will enable to attract and sell the company to target market. Ad
campaign can help in the awareness of society regarding the service and program offer by
the company. This is one way of promoting to unable the society to resist and stretch their
purchasing power.

Likely: Maintain regular customer that patronizes McDonald wants t the food and services
offered by the company. Through this the company can maintain if not level up the success.
It is normal operation and new room for increase in sales but no indication that it will drop.

Worst: When the customer can no longer afford to buy products of McDonald due to
economic problem. Global recession is one of the major problems that every company is
facing.

POLITICAL

Laws, government agencies help in the economic stability. When the government can
provide jobs, purchasing power will also increase. When laws are implemented careful it will
help a lot in development of the society. International target and exposure of the company
will depend upon on the trade law of the country.

Most likely: Political stability of the country wherein McDonald has its own branch. And
those country where there is plan for expansion. Reduced tax both on national and import
level can help in increasing profit because of budget saving. Government should prioritize
the programs that will minimize possible losses.

Likely: Continuity of the existing laws and policy of government offices. This will save the
company from difficulties in procuring necessary documents needed for legal operation of
the business.

Worst: Increase in tax is one of the major problems of the company. It will add to their
expenses and a burden of the company’s budget. Another is when there is war or violence
that arise in the place where McDonald is situated.

CLIMATE

Climate plays a vital role in the success of the business. McDonald stability and experience
in business are the most valued attributes of the company, wherein they know the different

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climate change. By knowing and forecasting climate company can find alternative that can
take advantage or find opportunity that can help the business regarding climate. Leaders
should anticipate the scenario that can affect the business badly and find a suitable solution
to contest the problem.

Most likely: Good climate can make the company more profitable. During this period other
industry has good income. When they increase they have spare budget to spend in
MacDonald.

Likely: No change of weather for a long period of time can affect the production of other
industry. It will decrease the income of target market.

Worst: Bad weather and natural calamity will extremely affect the operation of the business.
Force majeure is one anticipated problem but is cannot be eliminated because it is done by
nature.

TRADE AND TARIFF

It is one of the targets of every company, to go globally. Trade and tariff depends upon on
the policy and law of every country. Taxes, documents and other related expenses can
affect the import-export capacity of the company. Quality of the product is also main factor in
entering international trade.

Most likely: Government should give special rates on taxes and other fees on McDonald
because its main product is food which prime commodity. No tax and other fees increase
whenever there tax increase t ensure that no price increase will happen on the products.

Likely: When all the tax fees and requirements are still the same and no threats of
decrease in sales and profits.

Worst: If the government will impose new tax rates and fees on all import and export
product which results to high expenses but low in profit. The company usually increase the
prices of the product to prevent from possible losses with the risk of low demand because of
high price.

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TASK 3

(A) PROPOSAL FOR LEADERSHIP DEVELOPMENT

Development of a leader in an organization is necessary for the success of the company.

There should be a plan for it. It is best that during the conceptualization of plan leadership
development is one of the objectives that they must achieve. The proposed leadership
development must be formulated and implemented to provide a positive result that will
contribute in achieving organizational goals. Formulated proposed leadership development
activities that can help in the improvement of McDonald leaders.

The management should evaluate the performance of the leaders. From there McDonald
will know on which part the leaders need improvement. Trainings and seminars in handling
people is necessary to be effective leader. Review of policies and guidelines every year to
refresh the leaders on the internal rules of the company. Sometime small details will be
disregarded because they forgot already but that small mistake will lead to big trouble. The
necessity of refreshing the policies and guidelines of the company is recommended.

The company should allocate a budget for further schooling of the leaders. This will provide
well informed and efficient leaders. Since McDonald’s focuses mainly on customers welfare
it is necessary that leaders and equipped with education and intellect in dealing with
customers as well as subordinates. Leaders are expected to be smart and intelligent in
decision making. Leaders are expected to make their own goals and objectives based on the
company.

From the result of performance evaluation, development of leaders through training and
seminars and further study, the management should evaluate the impact. I every plan that
has been implemented evaluation is the next step. Whatever the result in evaluation will help
making decisions and actions in formulating another plan for leadership development. The
success or failure of the plan will help in the future plan of McDonalds in honing a world
class leader that will help in achieving company’s goal.

Success of the leaders will depend on the company’s relationship with them. The company
is responsible in motivating them to become a self-discipline, committed, smart, and have
ability to perform task in any different situations and can resolve problems in a short period
of time without compromising any party. This proposal is made for a company that is
customer oriented, and that is McDonald.

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http://www.leadership-expert.co.uk/leadership-styles/

TASK 3

(B) Range of method of leadership

There are different methods of leadership which leads the organization with their capabilities to the
terms and group in the organization. Different organizations use different leadership methods
suitable to their organization. Some of the methods of leadership which might be applicable to
McDonalds are discussed below.

(i) Emergent Leadership:

In this leadership method some of the potential leader emerges within the organization to
handle the situation of the organization. McDonalds need to give opportunities to these kinds
of capable leaders to lead the situation of the company. These leaders are influential,
motivate and come up with new ideas for the organization.

(ii) Established Leadership:

The employees of the companies who are very experience and have good knowledge of
handling organization are established leadership. McDonalds also has many established
leaders who are running the organization from very long time. This leadership restrict the
creative ideas of new comer. Therefore, McDonalds need to consider both established and
new leaders for its organization.

(iii) Entry to Headship:

The employees who are capable and have potential to handle the organization should be
promoted and given chance to lead the organization in McDonald. These are the employees
who work in low level and promoted in higher level. They should be given training to make
them capable to handle the organization on future.

(iv) Advanced leadership:

McDonald needs to give the training to its employees by giving them chance to deal with the
real situations of the company. This will enable them to solve the conflict, motivate them, to
handle the criticism; will increase the productivity of the employees. Extensive training needs
to be given to the leader to make them competent for future.

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(v) Consultant leadership:

By supporting the leaders to make them handle the individuals, groups and teams makes
them effective leader. Leaders are provided training from the experienced consultant to
make them able to handle the organization and its different situations. McDonald also gives
consultant training to its employees to build the good relationship among the employees,
motivate them and to encourage them to perform better.

Moreover, different leaders have different mindsets to run the organization. Some leaders
prefer action mindset to encourage the employees to work together and motivate them for
the best results. Some other leaders follow both quantitative and qualitative data analysis to
make the organizational decision. Similarly, some other leader’s believes on collaborative
mindset where they try to maintain the relationship in the organization among the teams and
groups where as some leaders believes on reflective mindset and think about the matter.
There are some other leaders who follow worldly mindset and give preference to society and
culture.

Most of the leaders of the organization follow mix of all these leadership style and mindset to
run their organization. McDonald’s leaders also use the different models and mind set
depending upon the situation of the company. No perfect match of leadership is there for
McDonalds they need to consider all the leadership style and mindsets.

http://www.mindtools.com/pages/article/newLDR_84.htm

TASK 3

(C) Management Competencies.

Management competencies are developed to enhance the knowledge, skills, attributes,

abilities of the leaders. No leader is perfect from all the aspects. All need to increase their
competencies to lead this challenging business environment. These competencies help the
leader to work effectively and efficiently for their organization. Building the management
competencies enhanced the decision making ability of the leader. Therefore, they should be
provided the required skills like communication, situational handling, motivational,
interpersonal etc. At the same time leaders should be sound with the information
technologies to be competent. Basically leaders should have three key competencies on
them. The first is ability to think creatively for the organization because needs creative ideas
to go ahead in the market. They should be able to understand the situation of the market
and act accordingly. The second ability is people ability that is the leaders must have skills to

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make good relation with all the stakeholders for the company benefits. The leader needs to
maintain the good relation within the organization and outside the organization for achieving
its organizational goal. Last but not the least; leaders should have task ability because they
are supposed to handle the different task of the organization. Therefore, they should be able
to handle the task efficiently and effectively.

More than these abilities leaders should be able to handle the stress because they face the different
situation in the organization. Judgement capabilities are also essential to be the good leader. All this
can be possible with effective training, situation handling, mentoring the leaders of McDonalds.
Leader should have power and ability to or capacity to influence others to do something they
would not otherwise do or to influence the behaviour of others. Policy execution is another
important competency that should be trained to the new leaders for future.
http://www.nwlink.com/~donclark/index.html

Conclusion:

From the above analysis of McDonald’s leadership it can be believed that the future prospect of the
organization is very good. The leaders of the McDonalds are doing commendable job for their
organization however they should make their leaders to make them more competent to face the global
challenge. They are advised to use the multiple leadership style for their organization because
situation differs and it requires the different leadership style to tackle it.

References:

http://www.nwlink.com/~donclark/index.html

http://www.leadership-expert.co.uk/leadership-styles/

http://changingminds.org/disciplines/leadership/styles/leadership_styles.htm

http://en.wikipedia.org/wiki/Leadership

http://www.mindtools.com/pages/article/newLDR_84.htm

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